Browse content similar to 05/12/2016. Check below for episodes and series from the same categories and more!
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Now for the latest financial news with Sally Bundock | :00:00. | :00:00. | |
Italy votes "No" in the referendum, and as promised, Prime Minister | :00:00. | :00:20. | |
We assess what's at stake for Europe's economy. | :00:21. | :00:30. | |
The new connection between the Hong Kong and Shenzhen stock | :00:31. | :00:33. | |
We will take you there for all the latest. Hello, and welcome. | :00:34. | :00:53. | |
Also in the programme, President-Elect Donald Trump | :00:54. | :00:58. | |
Italy has voted a resounding "No," rejecting the electoral reforms put | :00:59. | :01:05. | |
forward in the referendum brought by Prime Minister Matteo Renzi, | :01:06. | :01:08. | |
who has since announced his intention to resign. | :01:09. | :01:11. | |
The result has ushered in a fresh crisis for the Eurozone, | :01:12. | :01:14. | |
with one of the founder members of the European project mired | :01:15. | :01:17. | |
Here's a look at some of the problems facing the country: | :01:18. | :01:30. | |
The economy has barely grown over the last eight years, | :01:31. | :01:35. | |
and is likely to remain the slowest in Europe. | :01:36. | :01:42. | |
Meanwhile, public debt is around 130% of GDP. | :01:43. | :01:49. | |
In other words, the economy doesn't sell and produce enough goods to pay | :01:50. | :01:52. | |
That's about 2% above the Eurozone average of 9.8%. | :01:53. | :01:57. | |
Youth unemployment is nearly among young people is almost 39%. | :01:58. | :02:00. | |
In other words, almost four out of every ten young people | :02:01. | :02:04. | |
The IMF estimates that Italian banks are holding around $400 billion | :02:05. | :02:15. | |
This amounts to about one-third of all bad loans in the euro area. | :02:16. | :02:25. | |
More than 75% of these are loans to companies. | :02:26. | :02:28. | |
Now that we have a "No" vote, we could see the failure of up | :02:29. | :02:32. | |
Prime Minister Matteo Renzi's bank bailout programme | :02:33. | :02:35. | |
One-fifth of loans in the banking system are categorised as troubled. | :02:36. | :02:40. | |
After the vote was announced, Matteo Renzi announced his | :02:41. | :02:42. | |
resignation and said he had no regrets about | :02:43. | :02:45. | |
TRANSLATION: Today's Italian democracy is based on a | :02:46. | :03:05. | |
parliamentary system. We proposed to simplify the system, eliminate | :03:06. | :03:07. | |
separate assemblies, and broaden the areas of Iraq democracy. This is the | :03:08. | :03:14. | |
reform were brought to the referendum. -- direct democracy. I | :03:15. | :03:21. | |
am sorry, but I do away with no regrets. We fought the good fight | :03:22. | :03:26. | |
with passion and determination. It was obvious and evident from day | :03:27. | :03:32. | |
one. My experience and is here. With me is Doni Imeri, a country | :03:33. | :03:35. | |
risk analyst for IHS-Markit. It is good to see you. We heard from | :03:36. | :03:44. | |
Matteo Renzi. He said he would resign if the result was no and he | :03:45. | :03:50. | |
has followed through. The euro is sinking. What do you think will | :03:51. | :03:56. | |
happen? The markets will have a mixed reaction. To some extent | :03:57. | :04:01. | |
markets have been anticipating this. They were also anticipating | :04:02. | :04:07. | |
containment plans from Italy and the EU. But the ECB is likely to extend | :04:08. | :04:16. | |
its asset purchase programme so as not to repeat 2012. The main risk is | :04:17. | :04:22. | |
to bank shares and what happens to it ali in banks. Italian banks are | :04:23. | :04:26. | |
under considerable strength. -- Italian banks. They have to offload | :04:27. | :04:35. | |
loans. The minimal requisite for this is political stability. It is | :04:36. | :04:39. | |
precisely that which they might lack right now unless there is a quick | :04:40. | :04:45. | |
caretaker government that might stabilise the situation. In terms of | :04:46. | :04:50. | |
the Italian economy, it has been in a difficult place for quite some | :04:51. | :04:55. | |
time, hasn't it? That is why politicians are having a tough time | :04:56. | :04:58. | |
in Italy. Caucus through what needs to happen in the short-term to | :04:59. | :05:04. | |
prevent, you know, a collapse of Italian banks and the economy as a | :05:05. | :05:09. | |
whole in the EU. -- talk us through stability plan has been to have a | :05:10. | :05:13. | |
private-sector rescue plan for the banks, creating a second market for | :05:14. | :05:17. | |
the purchase of non-performing loans. If pressure keeps heaping on | :05:18. | :05:23. | |
the banking sector today and in coming days, there could be a | :05:24. | :05:28. | |
situation where the Italian government has to inject capital | :05:29. | :05:31. | |
into the banking system to stabilise it. The private sector bailout of | :05:32. | :05:38. | |
banks is all right, but who wants to buy from the private sector? That is | :05:39. | :05:42. | |
the problem. Exactly. It will be much more difficult to attract | :05:43. | :05:47. | |
investors at this particular juncture. We might have such a | :05:48. | :05:54. | |
situation where the state has to intervene. The fallout of such an | :05:55. | :05:57. | |
intervention would entirely depend on what they agree with the European | :05:58. | :06:05. | |
Commission and what rules will apply and whether bond rules will have to | :06:06. | :06:11. | |
take a hit. If they do, there has to be, they would have to be some sort | :06:12. | :06:15. | |
of compensation scheme going on. Unless they want to avoid a surge in | :06:16. | :06:20. | |
popularity for antiestablishment parties. Thank you for your time and | :06:21. | :06:30. | |
giving us a sense of what we can expect in the weeks ahead. We will | :06:31. | :06:36. | |
be looking at that later on the BBC. Join us to see how markets begin | :06:37. | :06:38. | |
their day in Europe. The long-awaited connection | :06:39. | :06:40. | |
between the Hong Kong and Shenzhen Foreign investors can now buy | :06:41. | :06:43. | |
mainland Chinese shares in nearly Chinese investors can access | :06:44. | :06:47. | |
Hong Kong listed companies. For the latest, let's cross over | :06:48. | :06:51. | |
to Helier Cheung who's Helier Cheung is our | :06:52. | :06:53. | |
reporter in Hong Kong. Helier Cheung, it is good to see | :06:54. | :07:09. | |
you. Tell us how it is going. It is the first day. Tell us why the | :07:10. | :07:12. | |
authorities have linked the two up the pillow yes. It is the first day. | :07:13. | :07:18. | |
Earlier we had a launch which was very busy. Quite a lot of people are | :07:19. | :07:25. | |
happy about the stock connect and some newspapers have called it an | :07:26. | :07:28. | |
historic day. Why have they been linked out? China once to | :07:29. | :07:34. | |
nationalise the Yuan and internationalise its markets and | :07:35. | :07:37. | |
attract more investment. You might remember earlier this year the MSCI | :07:38. | :07:42. | |
index decided not to include Chinese indexers. They said they were | :07:43. | :07:48. | |
worried about access ability issues with the Chinese market. This will | :07:49. | :07:52. | |
be seen as a step that will help combat that and improve that. On the | :07:53. | :07:58. | |
Hong Kong side, Hong Kong sees itself as a link between China and | :07:59. | :08:02. | |
the rest of the world. This morning, the Chief Executive, CY Leung, said | :08:03. | :08:08. | |
it will connect international and national wealth. What is the | :08:09. | :08:11. | |
interest like from outside of Hong Kong and China in what is listed in | :08:12. | :08:18. | |
gems and? -- Shenzen. At the start of this year we were influenced by | :08:19. | :08:25. | |
the casino-style trading in China. It is extremely volatile. Last year | :08:26. | :08:31. | |
it plunged by 14%. The level of interest depends on who you talk to. | :08:32. | :08:35. | |
Some feel investors will be put off by it volatility. Others say it has | :08:36. | :08:44. | |
long-term potential. Thank you so much, Helier Cheung. Live from the | :08:45. | :08:50. | |
Stock Exchange in Hong Kong. Let us squeeze in other stories. | :08:51. | :08:51. | |
US President-Elect Donald Trump says he will impose punitive taxes on US | :08:52. | :08:54. | |
firms that move manufacturing overseas. | :08:55. | :08:56. | |
Mr Trump promised a 35% tax on products sold in the US by any | :08:57. | :08:59. | |
business that fired American workers, and built | :09:00. | :09:01. | |
Firms should be "forewarned prior to making a very expensive | :09:02. | :09:05. | |
Mr Trump has promised to help blue-collar workers, | :09:06. | :09:08. | |
as well as reduce taxes and regulations on businesses. | :09:09. | :09:10. | |
Donald Trump has also strongly attacked China in a series | :09:11. | :09:13. | |
He complained about China devaluing its currency, | :09:14. | :09:16. | |
Last week, Mr Trump was criticised for taking a phone call | :09:17. | :09:20. | |
from the President of Taiwan, an island the US hasn't had | :09:21. | :09:23. | |
diplomatic ties with for almost 40 years. | :09:24. | :09:30. | |
The US Army has decided not to allow an oil pipeline to cross under | :09:31. | :09:34. | |
a reservoir on land it controls in North Dakota in a move | :09:35. | :09:37. | |
The Standing Rock Sioux Tribe hailed an "historic decision" and said | :09:38. | :09:41. | |
it was "forever grateful" to President Obama. | :09:42. | :09:43. | |
Instead, the US Army Corps of Engineers will look | :09:44. | :09:45. | |
at alternative routes, a statement by the campaigners said. | :09:46. | :09:48. | |
The Sioux have been protesting since April against the pipeline | :09:49. | :09:50. | |
That is a quick look at international business stories. | :09:51. | :09:54. | |
The euro is at a 20 month low against the dollar. I will see you | :09:55. | :09:58. | |
soon. Some communities in Britain | :09:59. | :09:59. | |
are becoming increasingly divided as they become more ethnically | :10:00. | :10:01. | |
diverse, according to a review | :10:02. | :10:05. |